Copyright 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & Hilton Slides prepared by Kim Langfield-Smith 6 Terminology Unit contribution margin ÙThe difference between the sales price per unit and variable cost per unit Contribution margin ratio ÙThe unit contribution margin divided by the unit sales price ÙThe proportion of each sales dollar available to cover fixed costs and earn a profit continued
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